Kathmandu. The Nepal Insurance Authority (INSURANCE AUTHORITY) has issued directives regarding the inclusion of insurance fees in the setting of business goals of life insurers.
The Nepal Insurance Authority (INSURANCE) has directed the life insurance companies and small-life insurance companies to include renewal insurance fee and term life insurance fee in addition to the first insurance fee while setting the business target (monthly, quarterly, half-yearly and annual targets set periodically) for their subordinate employees, departments, provincial offices and branches and sub-branch offices for the next fiscal year.
In a circular issued to all life insurance companies and small-life insurance companies, the NRA has said, “For the next fiscal year, its subordinate employees, sub-branches/ branches/ provincial offices and departments have been instructed to determine the business target in such a way that in addition to the first insurance fee, renewal insurance and term life insurance fee will also be included compulsorily.” ’
According to the circular issued by the NRA, there have been complaints that insurers give priority only to insurance policies that pay term and single insurance fees while setting business targets to subordinate employees and departments and offices. According to a circular issued by NRA Executive Director and Spokesperson Sushil Dev Subedi, the authority has issued the directive in the context of problems such as lack of access to insurance to the low-income group due to the focus of insurers on collecting large sums of insurance fees, expiry of insurance policy and dedication before the insurance period, which has added to the challenges in the delivery of quality and reliable insurance services.
